Secured Credit Card Application

Written by Kathleen Gagne

The good news is that you can find dozens of websites online that offer secured credit cards. You can even complete your secured credit card application online. It's a fairly simple process. The major difference between a secured and an unsecured credit card is that, to get a secured card, you must make and maintain a deposit that can be used to pay your charges if you don't make payments.

In general, the questions asked will be very similar to those asked if you are applying for an unsecured card. You will have to provide personal information, financial information, and contact information. Once you have completed the application online, your credit card will be issued to you very quickly. You can begin to use it as soon as you get it. How you use it will make all the difference in how quickly you can re-establish your credit.

Secured Credit Card Application Options

Before you select a secured credit card to use, you should compare the fees and interest rates of several cards. Some of the fees can be very expensive and may be recurring, either monthly or annually. In addition, the amount of your credit card is usually a percentage of the amount you put into the deposit account. Obviously, you will want to look for a company that offers a credit card limit equal to your deposit.

It's a good idea to make purchases with your new card and to pay off the entire balance each month. If you can't do that, you should always pay significantly more than the minimum amount due. With a secured card, it is even more important not to let the balance begin to grow to the point where you can't handle it. Since the interest rates will likely be higher than those of regular cards, you will want to keep your balance low. The credit company will report your payment activities to the credit bureaus, and, within a few months, your credit rating should start to improve.